What is Binance (BNB) Coin and How to Buy it?
- Before We Start
- What is Binance (BNB)?
- The Binance (BNB) Initial Coin Offering (ICO)
- How to Buy the Binance (BNB) Coin?
- Why Buy the Binance Coin? The BNB Qualities
- Where to Buy and Store BNB?
- The Future of BNB Token
Before We Start
Digital cryptocurrency is a form of money that is accepted internationally does not depend on governments and central banks to cross borders. Hence, these currencies are decentralized. Currently, more people adopt this new form of money as its value is preserved, and can be an alternative to gold and to the most traditional way of fiat currencies.
If you are new to cryptocurrency, it is worth mentioning that the revolution has come a long way. While we think that the crypto trade is at its peak, we are probably mistaken since the crypto market is everblooming with new and innovative digital coins and tokens.
The virtual currencies are being introduced into the global digital market at an unprecedented rate. There is a rising interest in the digital currencies, making the trading arena to be incredibly dynamic.
What is Binance (BNB)?
Binance comes from the words “Binary” and “Finance.” It has 2 meanings.
- It is one of the world’s leading cryptocurrency exchanges.
- The BNB Coin is a cryptocurrency which can be used as an intermediary when exchanging money, from one crypto-coin to another.
In 2017, ChangPeng Zhao founded a Chinese company called Beijie Technology. Beijie is the holding company which runs Binance exchange. It is currently headquartered in Hong Kong. Zhao, together with the Binance team, has worked to boost the growth of the platform into one of the most successful exchanges in the world.
The Binance (BNB) Initial Coin Offering (ICO)
To fund the creation of the exchange platform, Zhao, and his team developed a token and raised funds through an Initial Coin Offering. The ICO lasted for about a month, raising some $15 million. This was enough for paying startup expenses like hiring new developers, marketing, and bolstering the security of the exchange servers.
The BNB token can be used for paying the transaction fees incurred while exchanging the digital coins. For instance, if you want to convert your Litecoins to Bitcoin, you would need to pay some transaction fee (by receiving a slightly less amount of BTC than expected).
The Binance Token was innovative. Users who bought the token and used it as a means of paying the transaction fees were rewarded with a 50% discount. Most users would take advantage of the tokens to buy more Bitcoin or other major altcoins – and got some great returns.
The excellent management of the exchange platform helped bring in millions of users. The coin exchange space was competitive, but Binance has risen to be among the top 3 on the market. Most of the days, it is the largest exchange worldwide by volume traded.
How to Buy the Binance (BNB) Coin?
There are two scenarios that we should consider if you want to buy Binance (BNB) Tokens.
- How to buy BNB tokens in the case you already own another cryptocurrency
- The process to follow if you do not previously own any crypto coins.
I Own Bitcoin, Ethereum or Other Altcoins. How Do I Buy BNB?
Step 1 – Create an Account on Binance
To create an account, go to the registration page here. You need:
- Your email address (to an email client that you can access).
- A strong password.
You fill in the registration form and solve an easy puzzle (to verify that you are human) and voila! You are good to go. An email confirmation will be sent to you. Once you click it, you can move on to the next step.
It is important to read the verification email carefully since it gives you basic security tips (like not giving your password to anybody).
The next step is to log in and get started with the account. You will need to read some more tips on handling your account.
Click the checkbox to the right of each tip to show that you have understood it. After ticking all of them, you can proceed.
Step 2 – Enable the 2 Factor Authentication (2FA)
The 2FA is a method of ensuring that only one person, you, accesses the account anytime. It helps to protect your account from hackers or online conmen and scammers. Binance holds funds for you and millions of users and takes security very seriously.
Fortunately, enabling 2FA is very easy as you only need to install an app on your mobile phone which will always generate a code for you when logging into the account.
If you do not wish to install an app (or if you are unable to), you can use SMS for receiving a code whenever you log in.
You could always skip this step for later. However, skipping it will mean you remain unverified and hence your withdrawal limit will be low.
Step 3 – Account Verification
Next, you might want to verify yourself if you want to withdraw coins later. Verification involves sending a timestamped picture of yourself with an identification document.
You could opt to skip this step and go directly to depositing coins.
Step 4 – Depositing Your Coins to Binance
First, go to the “Funds” tab.
Type the Coin’s international symbol in the search box. In Cardano’s case, type ADA.
Next, click “Copy Address” and go to the wallet which has your ADA tokens. Send the coins to the address you copied from your Binance account. Please double check that you are sending ADA coins, not something else – since you could lose money if you sent a different type of coin.
After depositing it, your money might show up immediately on the exchange balance. You can check it in the “Funds” tab above.
It is available that you wait for 15 confirmations on the Cardano Blockchain explorer before making any more transactions.
Once it shows up on your balance, you can trade it for BTC, XRP or any other coin available on the exchange. In the rare case that your deposit did not reflect on the dashboard, it could mean 2 things:
- The transaction is incomplete
- The blockchain is congested due to high traffic.
Step 5 – Exchanging the Coins
Now that you have successfully deposited the funds, it’s time to change the coins into BNB. In the Binance trading platform, go to the “Exchange” tab and look for the pair to trade.
For convenience, choose “Basic” dashboard, instead of “Advanced.”
Choose BNB and proceed with trading. You will sell your ADA or XRP for BNB. When buying the BNB, you will use percentages to calculate how much you want of your money to be changed to BNB.
For instance, if you want all of the funds that you deposited to be converted to Binance coins, you will choose to sell 100%.
I Don’t Have any Cryptocurrency, How can I Buy Binance (BNB) Coins?
Since Binance doesn’t accept “real world” or fiat currencies like the USD or Chinese Yuan, you will need to buy some cryptocurrency first. It is recommended that you purchase the most liquid and stable currencies out there, such as:
- Bitcoin (Bitcoin Cash or Gold)
To do so, you will need to get them from a crypto exchange that is permitted in your country. For example, if you live in the USA, Australia, Singapore or Europe, you can use Coinbase. If you are located in another country, you should find a verified service that can serve you. Coinmama is one of the biggest exchanges in terms of reach.
Once you have your coins, you can head to Binance and follow the procedure outlined above.
Why Buy the Binance Coin? The BNB Qualities
Here are Some Great Reasons to Buy Binance (BNB) Coins
BNB is favorable in buying other coins in place of Bitcoin because it is quite affordable. You can freely trade BNB currency on the Binance platform.
Supply and Demand
Supply and demand determine the growth of the value of a currency in a digital exchange. Bitcoin gained value due to its 21 million supply cap. In the same way, 99 million BNB coins are already in the market, and with its fast spreading fame, its supply decreases. This will have a good effect on the coin’s future.
Binance is evidently one of the most trusted coins out there, due to its ease of operation and a high withdrawal limit of $30,000. Investors are drawing more confidence in BNB due to its minimal security issues. It was built with the robust, ERC 20 principles and its affiliation with the NEO coin has a direct impact on the growth of BNB.
As the Binance platform grows in value, BNB currency equally grows. It has infrastructure that is as strong as Bitcoin’s protocol.
Where to Buy and Store BNB?
It is recommended that you do not keep the coins on any exchange platform after buying them. Immediately they hit your account. You should transfer it to a safe place – like a cold wallet. The reason for this is that exchanges are soft targets for hackers these days, and people with their coins stored on them are sitting ducks.
The Future of BNB Token
The Binance Team has provided lots of incentives for people to adopt their tokens and use their exchange as the user default. It has used contests, rebates and more alluring methods to attract investors to use the platform.
Binance Coin Prediction
Many investors who are using BNB for trading and speculation are reaping the benefits of discounts through a healthy ROI. BNB exhibits all characteristics of a flourishing asset. Analytic simulation of the short-term returns, using Monte Carlo simulation shows more than a 50 percent likelihood that BNB will maintain healthy growth in 2018.
In addition, Binance periodical technical analysis indicates that the cryptocurrency is likely to be an excellent long-term object of investment. There is an anticipated rise in the long-term value of the crypto-coin, and a five-year price prediction for BNB is more than $31.978.
A Small Caveat
You need comprehensive historical data for making informed investment choices, as you would do in the stocks & bonds. Cryptocurrencies just like the fiat currencies are subject to economic tides and the global market volatilities.
The Last Word
The future of Binance is quite bright. As an exchange, it has ultra-fast speed. In fact, the technology underlying Binance is also powering more than 30 exchanges in Asia. The people running this company are very competent and have several hundreds of years of experience in finance between them. Its future outlook certainly seems to be bright.
As for the coin, it is something worth adding to your portfolio. The coins are quite compelling and when watched closely, can give nice returns. Just be sure not to invest more than you are comfortable with investing and “hodling”.